Can I change my PPP loan from 8 weeks to 24 weeks?

A borrower may select a covered period between 8 weeks and 24 weeks, which commences upon disbursement of the PPP loan proceeds. The flexibility on the part of a borrower to choose a particular covered period within that range was a feature added pursuant to the Economic Aid Act.

Do you have to spend the PPP in 8 weeks?

The Paycheck Protection Program Flexibility Act made some significant changes to PPP loans. You now have a choice: If your loan was issued on or before June 5, 2020, you can opt to take advantage of a 24- week period to spend the funds. Borrowers are no longer locked into the eight weeks.

Is the PPP loan going to be extended?

The Federal Reserve Board on Friday announced it will extend for a final time its Paycheck Protection Program Liquidity Facility, or PPPLF, by an additional month to July 30, 2021. The PPPLF extends term credit to financial institutions making PPP loans, accepting the PPP loans as collateral.

Should I use 8 weeks or 24 weeks for my PPP loan covered period 2021?

COVERED PERIOD: The covered period is the period beginning on the date the lender disburses the PPP loan and ending on the date selected by the borrower that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement (the “Covered Period”).

Do I have to wait 24 weeks for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.

What is the 24 week covered period PPP?

The Covered Period is either (1) the 24-week (168-day) period beginning on the PPP loan disbursement date, or (2) if the borrower received its PPP loan before June 5, 2020, the borrower may elect to use an eight-week (56-day) Covered Period. In no event may the Covered Period extend beyond December 31, 2020.

How long do I have to spend PPP funds?

The eight-week period to use your PPP funds was extended to 24 weeks. Previously, you had to spend at least 75\% of the funds on payroll. You now need to spend only 60\% of the funds on payroll.

Can PPP covered period extend into 2021?

In no event may the Covered Period extend beyond December 31, 2020. – For example, if you received your PPP loan disbursement on August 1, 2020, 24 weeks would be January 16, 2021, which extends beyond December 31, 2020. Therefore, you would have to end your Covered Period on December 31, 2020.

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